As an HR team, you have a tall order balancing between recruiting, talent development, and enforcing company policy. And while most managers do well in day-to-day management of their employees, when it comes to firing them, they could feel very lost. It’s important to train all managers in tasks and processes that help mitigate risk to the company, especially on terminating employees.
Training Managers on Employee Termination
- The importance of training. The training helps to protect the business and provide the right tools to ensure the process is standardized and done the same across the company. If the process is followed correctly and is done the same for every employee that’s fired, then it significantly decreases risk of a wrongful termination lawsuit related to being treated unfairly and creates less confusion amongst managers about what the right process is.
- The most important points to focus on. There are a handful of topics that managers need to understand before terminations can happen.
- Managers need to have a good understanding of documentation and what the corrective action process is. This helps ensure they understand there’s a whole set of steps to follow before even considering terminating an employee.
- Managers also need to be able to objectively articulate why the employee is to be terminated. There are main categories of reasons, with the basics including unsatisfactory performance, a change in organizational structure, and direct misconduct. They need to understand if they even have the authority to fire an employee.
- The process and tools used to get a termination approved. It’s helpful to walk managers through an example case scenario to ensure they understand.
- How to conduct a termination meeting is vital to ensure the manager does not say anything that could endanger the company. Make sure to avoid small talk, remain calm, and try to direct the meeting in an organized manner to avoid any misleading communication.
- Have reference guides available. Managers just learned a lot of new information. It’s important to have the information used in the training available and easily accessible. Depending on the employees they’re responsible for, the need to terminate an employee could happen their first month or after their first year.
- Don’t be afraid to enforce the rules. Managers represent the company and are the first line of defense against any possible employee issues that can pose a risk to the business. If a manager is not following the policy the HR team has set forth, they’ll need corrective action, or else they may not be fit to be a manager with direct reports. At the end of the day, the business needs to be protected before it can do anything else (especially grow revenue).
Bambee gives Managers and HR Teams the right tools to fire an employee the right way without worry about any additional training. Best-practice guides and tips are available at every step to ensure each Manager follows the same process the right way every time. Find out more at www.bambee.com.
-The Bambee Team
Firing an employee is not something that any HR team or business owner enjoys doing, but sometimes it is necessary to fire an employee in order to build the company and focus on the future. However, there is always the risk of a lawsuit for wrongful termination. The process of a wrongful termination lawsuit can be a nightmare for any business.
Wrongful Termination Lawsuits
- The wrongful termination. Once an employee is terminated, they can sue for any number of reasons. For example, you can be sued for implying to your former employee that he or she will not be fired; discrimination related to race, ethnicity, religion, age, sexual orientation, or for any disability; retaliation of the employee’s rights and whistleblowing. Every state has different rules, which may be different from federal rules.
- Are you at risk? One of the first things you need to ask yourself should be “Is my business or organization at risk for wrongful termination lawsuit?” Before you try and answer, there are some things you need to know. You can be sued for a number of reasons, including violating anti-discrimination laws, sexual harassment, not following through on written or oral agreements, or breaking labor laws. There are a number of ways a company can be sued after firing an employee, so it’s important to think through the firing carefully and consult with a lawyer just in case.
- They’re costly. The average cost to fight a wrongful termination lawsuit is $250,000, and there are a number of additional costs involved with firing and rehiring a replacement. In addition, if your company is deemed liable or found to have violated any labor law, then you can most certainly bet that you will pay much more.
- What all can the fired employee be compensated for? This can be something that varies from case to case. You could be accountable for paying any benefits lost, possible pay compensation, punitive costs, emotional distress, and most importantly, the fees it took to hire the lawyer. It is wise for you (the owner) or any HR team to weight the benefits when it comes to firing an employee.
- They’re time-intensive. If you thought your 10 hour day the other week was long, then brace yourself; the wrongful termination lawsuit process will be lengthy. Why is this? Your former employee obviously noticed something in your firing process that indicated that you may have done something incorrectly. This means you will need to gather all documentation and start fine tuning any piece of documentation to support your firing decision. Time spent on this process is money lost.
- Settlement costs are high. One out of ten wrongful termination lawsuits end in million dollar settlements. For the rest, the average costs are $40,000 to settle a wrongful termination case. This is just the settlement money paid to the plaintiff, which is in addition to costs related to defending against the lawsuit.
- How could you lose? There are various ways in which you can lose a wrongful termination lawsuit and it all comes down to your documentation. As a business owner or HR team, it is vital that everything is documented accurately and effectively so that risk to the business is low. Unsure of how to document? See which corrective action process is right for your business.
Bambee helps make sure your business is protected from wrongful termination lawsuits by helping your company’s managers give you the documentation and insight you need about employee performance and behavior. Find out more at www.bambee.com.
-The Bambee Team
Firing (aka terminating) an employee is not always something that every manager plans for; however, there comes a time when an employee needs to be let go. When that time comes, there are certain aspects that every manager needs to consider prior to making the termination happen. Listed below are seven effective methods for terminating an employee the right way.
How to Fire an Employee
- Review your company policy and get approval by HR. Regardless of the reason that your employee is being let go, you need to review your company policy first so you’re not putting the business at risk for a wrongful termination lawsuit. Gather all required documentation, evidence to support your reason for termination, and meet with HR for their approval. They’ll have a long list of to-do items before you can terminate the employee, and following those rules will make sure the business is protected. HR will, at the very least, help:
- Decide how much of a risk this employee is to the business if they’re terminated
- You follow local, state, and federal regulations related to employee termination
- Make sure the termination is fair to the employee and business
- Prepare for the exit meeting. The process of terminating an employee isn’t as simple as just stating “you’re fired.” Just as you would do when interviewing a candidate for hiring, you want to make sure to have a plan for delivering the news to the employees, including all the required paperwork and notifications if they’re eligible for COBRA or unemployment.
- Keep the exit meeting brief and professional. The transition is already awkward and the news to the employee may cause many different emotions to surface, which makes saying the right thing so crucial. It is very helpful to prepare a statement, have it reviewed by HR, and then practice it before the actual delivery.
- Have HR in the exit meeting. Given that emotions are running strong, it’s very important to have a neutral party within the company to either run the meeting or help guide it. HR will help make sure the employee gets everything they need as required by federal regulation before they exit the building.
- Alert the right departments about the termination. The final paycheck (including any unused time-off days or sick days) is required at the termination meeting so accounting will need to be notified before then. They’ll also need to deactivate them from payroll going forward. IT and Operations will also need to be notified in order to deactivate any online accounts and recuperate any company-owned belongings like key cards and id badges.
- Notify your team and their peers. After the exit, your team and the employees the now ex-employee worked with could be confused. Hold a meeting to inform the employees of the news and get ahead of any potential issues by being objective and brief about why the employee was fired and how this will benefit the company in the long-run.
Firing an employee the right way can be confusing and difficult, but Bambee helps make terminations straightforward and easy.
Head over to www.bambee.com to see how we give HR and Managers the right tools when it’s time to terminate an employee.
-The Bambee Team
Bambee has launched out of stealth-mode to fix and evolve the corrective action process for businesses big and small. Creating and communicating any type of corrective action is hard:
- Employees don’t know what to do when they receive them
- Managers don’t know how or when to write them
- HR is stuck either on years-old paper templates or relying on annual performance reviews to figure out and resolve any possible issues
But without the right corrective action process, businesses can suffer from:
- High employee turnover rates
- Increased hiring and training costs
- Lost productivity and low team morale
This is a lose-lose situation for everyone involved. To solve these problems, we created Bambee as an employee-focused, business-driven, workflow-optimized solution for HR. In plain English, Bambee is here to help HR teams focus on the humans by giving them the right tools to use at any time. Because when employees excel, the business thrives.
Out with the old, in with the new
Bambee puts your corrective action process online and organized in one central place to give:
- HR a streamlined workflow to discover, track, and manage employee issues
- Managers the guidance and coaching to confidently create legally compliant documentation
- Employees the communication and information to fix an issue
Bambee is easier for Managers than paper and pen to give HR robust documentation:
- Consistency and always to company policy
- Step-by-step uniform creation process
- Guided tutorials and best-practice tips
Bambee gives HR oversight and control on the corrective action process:
- Review and approve written warnings and performance improvement plans before delivery to the employee
- Easy to collaborate and add notes during review
- Automatic notifications and reminders for digital signatures
Bambee also gives HR peace of mind with:
- All corrective action and important insights organized into employee folders
- Scheduled manager and employee follow-up meetings for performance improvement plans
- Automated reminders for signatures, follow-up meetings, and other important events
Plus, a dashboard to give HR insight and visibility into important activity and trends to get ahead of potential issues. And we’re just getting started.
Bambee is ready for small business owners and HR teams of mid-sized and larger companies!
Bambee is free to try out, so check us out at www.bambee.com.
-The Bambee Team